Monday , January 25 2021

Why is oil so expensive? “Old producer games” also play a role.



Belgrade – The rise in oil prices of some producers by about ten percent is a result of high purchase prices for these oils, said agricultural expert Milan Prostran.


Source: Beta

Photo: Depositphotos, Syda_Productions

Photo: Depositphotos, Syda_Productions

But, as he says, the little-known business policies of the producers of this food to raise prices slowly, even before consuming old stocks of raw materials, bought at lower prices, are also important in raising the price.

“Product prices are decided by commodity prices and free markets, and this year more sunflowers are being paid, but also producers’ ‘old games’ are slowly starting to rise in prices of products made with cheaper raw materials before consuming stocks at lower prices.” he said to Beta Spacious.

Last year, it was bought from the sunflower producer for 31 dinars per kilogram, and this year it is bought for 36-37 dinars, which is about 20 percent higher.

Prostran has calculated that the price of oil for consumer pockets can now be “neutralized” through more rational consumption. “Sometimes agriculture has to pay for its work. This year’s rise in the price of sunflowers will be a reason to increase the area under oilseeds due to reduced production and a pandemic,” Prostran said.

Whether or not the price of oil will continue to be the price of sugar is still uncertain because most sugar beet producers have not yet been charged for these goods.

A farmer from Stara and Pazova, Jaroslav Fabrik, said he had not yet picked up the beets he had sold months ago and did not know the price he would pay, but the buyer told him he “didn’t care.”

Zdravko Šajatović, director of the millers’ association and the “Žitounija” pasta factory business association, said that although wheat is sold at higher prices this year than last year, no significant rise in the price of flour should be expected.

“The price of flour is always growing slower than the price of wheat, and there is a surplus of wheat this year, and the price has gone up because of the fear of a pandemic because more stocks have been created in the world,” Sajatovic said.

He added that although the price of wheat is 21.50 dinars per kilogram, the wholesale flour is worth about 26-27 dinars per kilogram and the supply is high, as there are at least 3,000 mills in Serbia that are constantly working and “who knows how much work they still demand when prices go up and prices go up “.

He pointed out that although the price of flour in small packages of one kilogram rises, it will not affect the wholesale price, as it makes up only 8% of consumption.




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